Wang, Gyu Ho; Kim, Jeong-Yoo; Yi, Jong-Goo - In: Journal of Law, Economics and Organization 10 (1994) 1, pp. 187-200
We formulate a pretrial negotiation problem as an infinite-horizon bargaining model with one-sided uncertainty and alternating offers, with the informed party having an outside option. The plaintiff has private information and also has an outside option of "going to court." The defendant moves...